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Tutorial 3
Questions for submission
1. Explain how higher saving leads to a higher standard of living. Can you think
of any circumstances in which a higher saving rate leads to a lower standard of living?
Does a higher rate of saving lead to higher econom

Tutorial 4
Questions for submission
1. Each of the following situations involves moral hazard. In each case, identify the principal
and the agent, and explain why there is asymmetric information. How does the action
described reduce the problem of moral h

Tutorial 5
Questions for submission
1. If RBA wants to lower the target cash rate from 2.75% to 2.50%, what will they do to
achieve the target? (Hints: you should use a simple model of the money market (a diagram),
as well as discussing the specific opera

Tutorial 2
Questions for Submission
1. From 1950 to 2014 the CPI in Australia rose around 2310 per cent. Use this fact to adjust
each of the following 1950 prices for the effects of inflation. Which items cost less in 2014
than in 1950 after adjusting for

Tutorial 3
Questions for submission
1. Explain how higher saving leads to a higher standard of living. Can you think of any
circumstances in which a higher saving rate leads to a lower standard of living? Does a higher
rate of saving lead to higher econom

Tutorial 1 (Due at 5 pm 13th March)
Tutorial questions for submission
1. In the year 2011, the economy produces 100 serves of fish and chips for $8 each. In the
year 2012, the economy produces 200 serves of fish and chips for $10 each. Calculate
nominal G

Tutorial 11 answer guidelines
Question for submission and discussion
Please submit only part (a) of question 1 for your tutorial 11. Part (b) and (c) are for
discussion.
1. (Last year exam question)
This question asks you to analyse an unexpected decrease

Tutorial 5 answer guidelines
Answer for submission questions
1. When the RBA wants to lower the target cash rate from 2.75% to 2.50%, they will do
several things to achieve this target.
The announcement of this target is important, since the RBA is giving

Tutorial 4 answer guidelines
Questions for submission
1. Each of the following situations involves moral hazard. In each case, identify the
principal and the agent, and explain why there is asymmetric information. How does
the action described reduce the

Tutorial 8 answer guidelines
Answer for discussion questions
1. Consider the Wage Setting Condition
a) Explain the meaning of
and
(
)
in the equation.
is the fraction that workers negotiate their wages in period t.
is the remaining fraction, workers are c

Tutorial 10 answer guidelines
Question for submission
Consider the following equation, which could be used by a central bank to select a nominal
interest rate:
= + ( ) + ( )
Where the variables are defined as follows:
is the nominal interest rate at tim

EMBA 807
Corporate Finance
Dr. Rodney Boehme
CHAPTER 1: INTRODUCTION TO CORPORATE FINANCE
What is Corporate Finance?
In this course, we will examine the activity of employing scarce resources in the
pursuit of real activities.
From our corporate finance